The impact of exchange rate fluctuations on international trade has long been a major concern for policy-makers. This … is particularly the case in Europe, where countries trade extensively with each other. The crisis that began in the … Summer of 1992 generated increased exchange rate fluctuations and, therefore, renewed concerns about consequences for trade …

regime on trade prices. The results suggest that a system of pegged rates like the EMS, although helpful, is not necessary to …This paper investigates the role of the exchange rate regime in the process of trade adjustment, by examining the … relationship between trade prices and exchange rate regimes. The theoretical framework is a dynamic one à la Froot-Klemperer (1989 …

We investigate theoretically and empirically the competitive effects of increased trade on prices, productivity and … bias of monetary policy. Our results suggest that increased trade could account for as much as a quarter of European …

trade and industrial organization: In a market with switching costs (or `brand loyalty'), a firm's current market share is …

The stability of the EMS depends crucially on the realignment expectations of market participants. In this paper we … institutional arrangements of the EMS. We find the following empirical regularities for FF/DM and IL/DM exchange rates: (1) expected …

many EMS realignments we are also able to quantify the `peso problem'. …

Fixed exchange rates are less volatile than floating rates. The volatility of macroeconomic variables, such as money … only on macroeconomic fundamentals are unlikely to be very successful. It also suggests that there is no clear trade …-off between reduced exchange rate volatility and macroeconomic stability. …

forward premia on monthly exchange rate returns in a framework that allows for volatility timing. We implement Bayesian … stochastic volatility innovations; and (ii) strategies based on combined forecasts yield large economic gains over the random …